U.S. and World Cotton Economic Outlook April 2008 Prepared by: Economic Services National Cotton Council

Macroeconomic Environment

U.S. Real GDP Growth

U.S. Crude Oil Spot Price

U.S. #2 Diesel, Gulf Coast

Civilian Unemployment Rate

U.S. Federal Budget Surplus (CBO Projection)

CBO Ag Baseline Spending

Real GDP Growth in Selected Countries

Euro (Currency per U.S. Dollar)

Real Exchange Rate Index (Other Important Trade Partners, Source – Federal Reserve )

Ag Prices Received Index

U.S. Net Farm Income

U.S. Cotton Supply

December Cotton Futures Cents per Pound

December Corn Futures Cents per Bushel

November Soybean Futures Cents per Bushel

Southeast2,255 2, Mid-South 2,750 1, Southwest5,122 4, West ALL UPLAND 10,538 9, ALL ELS ALL COTTON10,830 9, Southeast2,255 2, Mid-South 2,750 1, Southwest5,122 4, West ALL UPLAND 10,538 9, ALL ELS ALL COTTON10,830 9, U.S. Planting Intentions % Actual Intended* Change Actual Intended* Change % Actual Intended* Change Actual Intended* Change Thousand Acres *2008 NASS Prospective Plantings Report *2008 NASS Prospective Plantings Report

U.S. Cotton Production * USDA 2008 Ag Outlook Forum Estimates

U.S. Cotton Supply * USDA 2008 Ag Outlook Forum Estimates

U.S. Cotton Demand

Net Domestic Fiber Consumption

Cotton’s Share of Fiber Consumption

Components of Retail Cotton Consumption

U.S. Cotton Textile Imports

U.S. Cotton Content in Textile Imports

U.S. Trade With Mexico

U.S. Trade with CBI

U.S. Imports from China

U.S. Textile and Apparel Imports from China (All Fibers)

U.S. Cotton Mill Use (Calendar Year, Million Bales) *National Cotton Council Forecast

U.S. Cotton Mill Use (Crop Year, Million Bales) *USDA 2008 Ag Outlook Forum Estimates

U.S. Cotton Production & Use * USDA 2008 Ag Outlook Forum Estimates

The World Market & U.S. Cotton Exports

China Cotton Supply & Use * USDA 2008 Ag Outlook Forum Estimates

World Cotton Production * USDA 2008 Ag Outlook Forum Estimates

World Fiber Mill Use *PCI

Fiber Prices

World Cotton Mill Use * USDA 2008 Ag Outlook Forum Estimates

Foreign Cotton Production & Use * USDA 2008 Ag Outlook Forum Estimates

U.S. Cotton Exports * USDA 2008 Ag Outlook Forum Estimates

World Cotton Ending Stocks * USDA 2008 Ag Outlook Forum Estimates

Cotton Stocks/Use (World less China)

U.S. Supply and Demand Million Bales Beginning Stocks Production Imports Total Supply Mill Use Exports Total Offtake* Ending Stocks Stocks-to-Use Ratio50.5%26.7% 2007/082008/09** **USDA 2008 Ag Outlook Forum Estimates *Includes Unaccounted

Beginning Stocks Production Imports Mill Use Exports Ending Stocks Stocks-to-Use Ratio47.7%44.0% World Supply and Demand Million Bales 2007/082008/09* * USDA 2008 Ag Outlook Forum Estimates

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